CompoSecure (NASDAQ:CMPO) versus Freightos (NASDAQ:CRGO) Financial Analysis

CompoSecure (NASDAQ:CMPO) and Freightos (NASDAQ:CRGO) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Volatility and Risk

CompoSecure has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Freightos has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for CompoSecure and Freightos, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CompoSecure	0	1	6	0	2.86
Freightos	1	0	0	0	1.00

CompoSecure presently has a consensus target price of $25.50, suggesting a potential upside of 32.36%. Given CompoSecure’s stronger consensus rating and higher possible upside, analysts plainly believe CompoSecure is more favorable than Freightos.

Earnings and Valuation

This table compares CompoSecure and Freightos”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CompoSecure	$160.68 million	15.16	-$53.72 million	($2.16)	-8.92
Freightos	$23.78 million	4.92	-$22.49 million	($0.48)	-4.75

Freightos has lower revenue, but higher earnings than CompoSecure. CompoSecure is trading at a lower price-to-earnings ratio than Freightos, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CompoSecure and Freightos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CompoSecure	-24.53%	-65.50%	26.83%
Freightos	-82.31%	-47.17%	-32.99%

Insider & Institutional Ownership

37.6% of CompoSecure shares are held by institutional investors. Comparatively, 22.7% of Freightos shares are held by institutional investors. 52.1% of CompoSecure shares are held by company insiders. Comparatively, 19.6% of Freightos shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

CompoSecure beats Freightos on 10 of the 14 factors compared between the two stocks.

About CompoSecure

CompoSecure, Inc. manufactures and designs metal, composite, and proprietary financial transaction cards in the United States and internationally. Its primary metal form factors include embedded, metal veneer lite, metal veneer, and full metal products. The company also offers Arculus Cold Storage Wallet, a three-factor authentication solution, which supports specific digital assets, including Bitcoin, Ethereum, non-fungible tokens and others. In addition, it offers Payments + Arculus Secure Authenticate, white-labeled cold storage wallet, Payments + Arculus Cold Storage, and Payments + Arculus Authentication + Arculus Cold Storage. The company serves financial institutions, plastic card manufacturers, system integrators, and security specialists. CompoSecure, Inc. was founded in 1910 and is based in Somerset, New Jersey.

About Freightos

Freightos Limited, together with its subsidiaries, operates a vendor-neutral booking and payment platform for international freight. It operates WebCargo, a platform for connecting carriers and forwarders; and Freightos.com, a platform for connecting service providers to importers/exporters. The company also offers software-as-a-service solutions, such as WebCargo Air for airline rates and ebookings; WebCargo AcceleRate, a multi-modal rate repository; data services; and WebCargo Airline Control Panel that enables airlines to control bookings and optimize pricing with real-time booking analytics. In addition, it provides digital customs brokerage services. The company is based in Jerusalem, Israel.